04-13-1999ERMU MIN ELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
ELK RIVER UTILITIES COMMISSION
HELD AT THE ELK RIVER MUNICIPAL UTILITIES OFFICE
APRIL 13, 1999
Members Present: President, James Tralle; Vice Chairman, John Dietz; Trustee, George
Zabee
Staff Present: Bryan Adams, General Manager; Glenn Sundeen, Line Superintendent;
Robert McCartney, Water Superintendent; Patricia Hemza, Office Manager
Others Present: Steve McDonald, Abdo, Abdo, Eick& Meyers, LLP; Lori Johnson,
Finance Director/City of Elk River; Wade Lovelette, ERMU Line Foreman, Scott
Thoreson, ERMU Lineman; Lloyd Lorenzen, ERMU Lead Lineman
1. Call meeting to order at 4:00 P.M.,April 13. 1999
2. Consider Utilities Agenda
George Zabee moved to approve the Utilities Agenda. John Dietz seconded the
motion. Motion carried 3-0.
3. Consider Consent Agenda
James Tralle moved to approve the Consent Agenda as follows:
3-9-99 Minutes
March Check Register
Financials
6.1 Presentation of 1998 Audit by Abdo.Abdo, Eick& Meyers
Steve McDonald appeared to present and discuss the 1998 Audit of the Elk
River Municipal Utilities. He began with the Management letter to the Chair-
person and Members of the Commission, noting that no significant audit
adjustments were necessary, there were no difficulties in performing the
Audit, and no reportable conditions. Mr. McDonald then moved on to the
Balance Sheet and the Combined Statements of Revenue and Expenses.
Questions from the Commission were responded to and discussed. John Dietz
asked if there were any problem areas cited; Mr. McDonald replied that there
were none. Connection charges for Water and Electric were reviewed, with
the different concepts for each, with the facts that connection fees in the Water
Department fund capital expansion and that operations fund capital expansion in
the Electric Department.
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Regular Meeting of the Elk River Municipal Utilities Commission
April 13, 1999
James Tralle acknowledged Mr. McDonald in his presentation of the office, and
thanked Staff for their involvement.
5.1 Review results of Water Department/Waste Water Survey
Bryan Adams responded to the request of John Dietz to survey other
Communities concerning the combining of the Sewer and Water departments.
Bryan offered the results of his survey, and Lori Johnson presented her memo
on a request for information on combining the Water and Sewer departments.
Discussion on what is best for customers, the pending retirement of the present
Water Superintendent, and future retirement of the Sewer Superintendent ensued.
Lori Johnson commented that a combining of operations without a referendum,
by sharing a single department head for both Water and Sewer could be
advantageous. John Dietz in advised that he is in favor of this concept. Bryan
Adams' memo also indicated combining the Sewer and Water under the Utility
Commission would present some cost savings.
John Dietz directed Staff to present job descriptions at a future Elk River
Utilities Commission meeting.
5.2 Up-date Proposed Wind Turbine Generation Project
Bryan Adams Up-dated the Commission on the commitment by Alternate Energy
to construct a wind turbine. The firm is presently looking for property, and will
probably construct within the landfill site. Wheeling charges are being modeled
at this point, and are important for the future. The Sherburne County Courthouse
is presently investigating a generation facility at the landfill, utilizing landfill
gas to reduce their power costs.
5.3 Authorize Bonding for Eastern Area Water Project
The proposed involvement by the Utility in the $800,000 shortfall was discussed,
with reviewal of the previous motion by the ERMU Commission. Lori Johnson
presented her view of the bonding.
John Dietz moved to pay $500,000.00 of the shortfall in cash for the Eastern Area
Water Project, and to have the City include $300,000.00 in the bond issue on the
behalf of the Elk River Municipal Utilities. George Zabee seconded the motion.
Motion carried 3-0.
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Regular Meeting of the Elk River Municipal Utilities Commission
April 13, 1999
5.4 Review the filling of position for pending staff retirement
Staff reviewed the resumes received, as well as the revised job description
requested by the Commission at the March meeting. In view of the discussion
under 5.1, this Item will be tabled.
6.2 Consider ERMU 1999/2000 Wage Request
Wade Lovelette presented the request for a Wage Increase, based upon the
average metro pay, as has been considered for several years. Staff was directed
to survey Buffalo for wage information. John Dietz offered that the City of Elk
River received a 3% increase in wages on 1-1-99. John Dietz directed Staff to
present to the Commission the dollar per hour value of benefits received by the
ERMU employees. Action was deferred to the May meeting.
6.3 Review& Consider Results of Bids for Chlorine Equipment Installation
The Bid Tabulation for Chlorination of the water distribution system was
presented and discussed. Staff recommends the low bid from EnComm Midwest
be accepted for installation of equipment.
John Dietz moved to accept the low bid from EnComm Midwest for
installation of equipment for chlorination of the water distribution system, and
to Hawkins Chemical for the equipment, with Staff to use their discretion in
selection of the scale to be used. James Tralle seconded the motion. Motion
carried 3-0.
Other Business
No other business.
The next scheduled meeting of the Elk River Municipal Utilities Commission will be
May 11, 1999.
John Dietz moved to adjourn the April 13, 1999 Regular meeting of the Elk River
Utilities Commission. George Zabee seconded the motion. Motion carried 3-0.
The April 13, 1999 Regular meeting of the Elk River Municipal Utilities Commission
adjourned at 5:40 P.M.
Respectfully submitted,
Patricia Hemza
Office Manager